Pulling the plug and filing for BK.

[mebeses15]

Finally taking the plunge and filing for Chapter 7 due to a car accident (ex-husband was 100% not at fault) back in 2007 which severely injured my then husband causing him to have 2 seperate spinal surgeries, our contractor Audio video business to ultimately fail, a foreclosure and finally a divorce. Didn't want to file for bankruptcy but some holes just can't be climbed out of any other way when they total over $146,000 and growing every day with all the interest being applied. Most of the debts are from the business which I had to personally guarantee credit accounts for audio video equipment and to cover employee payroll since my ex was now handicapped and unable to walk. Not from running up the all credit cards from shopping, new cars all the time and just keeping up with the Jones'.

In California, clients only have to make a small deposit when they sign a contract with a contractor. Per California law:it is illegal to ask for or accept a down payment of more than 10 percent of the total home improvement contract price or $1,000, whichever is less. So if a Client ordered a $2,500 job or a $75,000 job, we still had to use our own credit to fulfill equipment orders and get paid in increments as the job went along.

It's especially frustrating when I'm told by judgmental people that I'm lower than a cockroach for filing for BK and I should be out there working 3 and 4 jobs to pay the accounts off.(I only have a fulltime job working 60 hours a week and a part-time job to fill in any free hours to make extra money)

[llecs]

OP, don't file. IIRC, CA's SOL is 4 years. If the start of these events were in 2007, then you are passed or approaching the end of your state's SOL. In other words, you can't be sued and these creditors can't come after you. They can try to sue, but if you go to court you can use SOL as a defense and win. You'd unnecessarily throw away money if you file.

[mebeses15]

Thanks for responding.

True, most of the debt from this time will be off my credit report in the next two years. I've already told several companies who kept calling me to stop due to SOL.

Unfortunately, I also have a judgment from 2007 for $16K plus interest for Commercial audio equipment for a client that I had to personally sign a guarantee for credit. I also have another judgment for the business space lease for $5K Plus interest. Here in California, a judgment is collectible for 10 years and if not collected, the Plaintiff can refile the judgment for another 10 years. This can go on indefinitely. I'm going to be 50 years old in a few months and want to buy a house in the next few years and start putting away for some kind of retirement fund. So far I've saved about 3K. That's not going to keep a roof over my head very long.

I joined Myfico back in May and have become addicted to this website. I really want to reclaim my credit score of 800 plus which is what it was before all this happened. I haven't had a credit card in over 6 years because I had no idea how to rebuild my credit by getting secured cards and being an AU on credit cards. I thought I had to file BK wait at least 7 years till everything came off or pay off everything before I could start rebuilding credit.